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CHAPTER-6
FINDINGS, SUGGESTIONS,
RECOMMENDATIONS, MANAGERIAL
IMPLICATIONS, SCOPE FOR FUTURE
RESEARCH AND CONCLUSION
Findings of the Study
Suggestions of the Study
Recommendations of the Study
Managerial Implications of the Study
Scope for Further Research
Conclusion of the Study
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CHAPTER – 6
FINDINGS, SUGGESTIONS, RECOMMENDATIONS,
MANAGERIAL IMPLICATIONS, SCOPE FOR FUTURE
RESEARCH AND CONCLUSION
INTRODUCTION: This chapter is derived to present (i) Findings of the study (ii) Suggestions of the
study(iii) Recommendations of the study (iv) Managerial Implications of the Study (v)
Scope for Future Research and (vi) Conclusion of the study. The evaluation of the result
obtained after the analysis of data is discussed in this section.
6.1. FINDINGS OF THE STUDY:
The results are evaluated vis-à-vis the objectives have been justified with the support of
data. Therefore the objectives of the study are highlighted once again before the
discussion of the results. This study has one main objective and nine sub objectives
comprising of:
MAIN OBJECTIVE:
To study the Rural Marketing Strategies of selected H.U.L. products and its
influence on buying behaviour of the selected rural respondents from rural market
in Gujarat State.
Rural marketing strategies are comprises of various thoughtful planning and activities
and the bunch of all those are known as strategies. Mainly in marketing, 4P’s are
considered as marketing mix. The combination of various P’s namely Product, Price,
Place and Promotion are being implemented effectively to get success in to market. In
the rural areas there are 4A’s as like 4P’s, namely Availability, Awareness, Affordability
and Acceptability. So all the company needs to consider the 4A’s and design their
strategies accordingly to get more success specifically in rural market.
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The main objective is to study the Rural Marketing Strategies being implemented by
H.U.L. for the selected products category and selected products among that category in
the selected areas of Gujarat state. To study this objective in detail it has been divided in
to the sub objectives and the combine result of that sub objectives supports the main
objective of the study.
The one of the sub objective has been designed to know the awareness level of selected
H.U.L. products in to selected areas of Gujarat state, which is an important parameter to
measure the effectiveness and study concludes that, for selected tea of H.U.L., that is
Taaza and Taj Mahal have only awareness level of 75 percent of rural respondents, while
in other all selected eight products the awareness level is almost 95 percent. So it can be
said that company has achieved satisfactory awareness level in the selected rural areas of
Gujarat state.
In the other sub objective an attempt has been made to identify, the factors which plays
an important role while making buying decision towards selected H.U.L. products, and It
can be concluded from the collected data of selected rural respondents that, majority of
respondents give first priority to the good quality of products and almost similar
importance has been given to the low price of the products, so rural respondents are
looking for good quality of products in low price. With this they do give importance to
the some of the factors like easily availability of the products, discounted price and in
some products fragrance and colour variations in the products. While there are such
factors which are being least considered by the selected rural respondents those are brand
loyalty, brand ambassador, advertisement and seasonal effect associated with the
selected H.U.L. products, while making purchase decision. So it clearly indicates that
the product strategy form the H.U.L. is being well accepted and people are using H.U.L.
products because of above mentioned reasons.
Same way attempt has been made to identify the reason for switchover from the selected
H.U.L. brands to some other brands, are almost alike the reasons for purchasing H.U.L.
products. As rural respondents are more price conscious, they give first preference to the
low price product, and if they found the low price with good quality they will switchover
the brand. With price they also give importance to the availability of the product at their
buying place and discount price to making buying decision.
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The effectiveness of the marketing strategy can also be measured by the satisfaction
level of rural consumers. So the same has been analysed with the help of collected data
and it can be said that the majority of the rural respondents are quite satisfy with the
products and overall product attributes.
The other important aspect of marketing strategy is the price of the product, the collected
data says that, rural consumers are more price savvy compare to brand name and quality
of the product. They give first preference to the price of the product and with this they
are looking for good quality of product. So customer prefers the H.U.L. products because
of in some cases it is low price and good quality product.
The other important factor of marketing strategy is promotion of the products.
Specifically in the case of selected H.U.L. products in selected rural areas of Gujarat
state, rural respondents are price conscious and so in rural areas, the most preferred
promotional activity for the selected H.U.L. brands is price discounts on MRP of the
product. Rural respondents prefer to purchase the branded products but with this they
give equal importance to the price of the products, so they are looking for price discount.
While very few rural respondents prefers the extra quantity in the same price as a part of
promotional activity.
The last but not least, the important factor of the rural marketing strategies is availability
of the product at the regular buying places of rural consumers. The collected data says
that, in case of selected H.U.L. products, in majority of selected product the availability
is almost 95%. As par the collected data, the lowest availability among selected H.U.L.
product is tea and its availability is also 77%. It means that the selected H.U.L. products
have satisfactory presence in the selected rural areas of Gujarat state.
So, overall it can be said that, the rural marketing strategies being implemented by the
H.U.L. for selected products and in the selected rural areas are quite satisfactory, their
strategy helps them to achieve the results like good awareness level of H.U.L. products,
good acceptance level of selected H.U.L. products by customers, satisfy customers,
makes the products available at majority of places, respondents are happy with the
pricing of the product and they are also happy with the promotional activity being offer
by the H.U.L. , for the selected products in selected rural areas of Gujarat State.
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Sub Objective 1:
To assess consumer awareness for H.U.L. products in selected rural areas of
Gujarat State.
There has been noticeable change in the rural consumer’s inclination towards branded
F.M.C.G. products. Also there has been shift in acceptance level, from low priced
F.M.C.G. products to medium and high price F.M.C.G. products. Majority of
respondents found aware about the availability of selected F.M.C.G. products. Rural
consumers generally prefer to buy the products, which are easily available at their
regular buying places. In case of brand awareness level of the rural consumers, it has
been found that they were aware of the leading brands in case of F.M.C.G. products.
From the collected data, table- 5.4 it has been observed that, out of ten selected H.U.L.
products, in eight products, respondent’s awareness level towards that selected products
is 95%. Only in case of selected Tea from H.U.L. namely Taaza and Taj Mahal, the
awareness level of selected rural respondents is near to 75%. So it can be said that there
is ample of awareness towards selected H.U.L. brands in selected rural areas of Gujarat
state.
From the table 5.20 to 5.29,which represent cross tabulation output between awareness
of selected H.U.L. products versus it is always difficult to differentiate between spurious
products and branded products, findings of the tables represents that majority 652
respondents are agree with the difficulty of differentiation between spurious and branded
products. It can be commonly concluded that as mentioned above majority of rural
respondents are aware about selected H.U.L. products, though majority of them facing
the problem of brand differentiate.
From the Hypothesis H8 and with the help of chi-square test it has been observed that
only in case of clinic hair shampoo the null hypothesis has been accepted, it means that
there is no relationship between awareness and availability of clinic hair shampoo. While
in rest of all selected H.U.L. products hypothesis has been rejected. It means that, there
is a significance relationship between awareness and availability between selected
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H.U.L. products. So it can be concluded that more awareness of the products leads to
more availability of the products.
So form the above it can be concluded that, for selected tea of H.U.L., that is Taaza and
Taj Mahal have only awareness level of 75 percent among rural respondents, while in
other all selected eight products the awareness level is almost 95 percent. So it can be
said that company has achieved satisfactory awareness level in the selected rural areas of
Gujarat state.
Sub Objective 2:
To examine the factors responsible for increasing competitiveness among F.M.C.G.
manufacturers for entry into the rural market segment of Gujarat State.
Rural Culture is comprises of shared values, beliefs and perceptions that persuade the
behaviour of rural consumers. There are different groups based on qualification,
occupation, monthly income, size of family and standard of living, and each group exerts
influence on the buying behaviour of rural people in villages.
The first factor which plays an important role to increase competitiveness among
F.M.C.G. brands is increasing literacy ratio of rural people. Table 5.1 represents the
qualification level of rural respondents. Out of 1000 selected rural respondents, only 100
(10%) respondents had not gone to school. It means that 90% of the rural respondents
are qualified respondents. Generally it is said that, more the literacy level leads to more
awareness of the products. It has been also seen from the Annexure-1; Hypothesis-1,
there is a significant relation between qualification and awareness of selected H.U.L.
products. Only in the case of Closeup and Pepsodent toothpaste, the null hypothesis has
been accepted. So in general it can be said that the increasing level of literacy among
rural people leads to more awareness about the market scenario and make them aware
about the options available in the market, and this leads to the competitiveness for
F.M.C.G. brands.
The second factor which plays an important role to increase competitiveness among
various F.M.C.G. brands is increasing monthly income of rural people. Table 5.1
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represents the various slab of monthly income of family of selected rural respondents. It
indicates that majority 301(30.1%) respondents have monthly earning of more than
rupees 10,000 and above. While only 27 (2.7%) respondents have monthly income
between zero to 2,000.With reference to the correlation Analysis Table – 5.35, it shows
that there is a moderate relationship between monthly income and monthly budget
allocation for selected F.M.C.G. products. So from the collected data it can be said that
more the income more the purchasing power. Hence it provides more options to rural
people while making purchase decision, and it increases competitiveness for different
F.M.C.G. brands.
The third important factor which plays an important role to increase competitiveness
among various F.M.C.G. brands is awareness about different F.M.C.G. brands available
in rural areas. The same has been already justified in sub objective no. 1. So in general it
can be concluded that more the awareness of the different available products in the
market more the competition faced by available brands.
Fourth important factor which leads to increase competitiveness among various
F.M.C.G. brands is main source of information. From the table number 5.6, it can be said
that almost 95% of respondents using television as main source of information for
different selected H.U.L. brands. It also strongly indicates that, the rural respondents
who uses television as their main source of information would be definitely getting
knowledge of other brands from the same source. So it can be said that television plays
an important role to increase competitiveness among different F.M.C.G. products.
Another important factor which leads to increase competitiveness among various
F.M.C.G. brands is available variety of size of products in to the rural market. According
to table 5.31, rural respondents gives more preference to the variety of the size of
products available in the market, which has been represented as mean value of 3.95 out
of 5 in the table.
Another important factor which leads to increase competitiveness among various
F.M.C.G. brands is price of products in to the rural market. According to table 5.31, rural
respondents give more preference to the price compare to, which has been represented as
mean value of 3.90 out of 5 in the table.
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Another important factor which leads to increase competitiveness among various
F.M.C.G. brands is easily availability of products in to the rural market. According to
table 5.31, rural respondents give more preference to the easily availability of F.M.C.G.
products while making buying decision. This has been represented as mean value of 3.88
out of 5 in the table.
Sub Objective 3:
To study the impact of various factors affecting the rural consumer buying
behaviour, towards selected H.U.L. products in rural areas of Gujarat State.
Rural consumers are not only looking for cheap products but they are seeking value for
money, and if a brand fits into this category, they are ready to pay for it. Also when they
can afford, they would prefer experiment with the brands. They show their willingness to
try other brands too, if they found more benefits associated with the product in the
nearby price. Consumer behaviour is often based on perception rather than reality. Most
rural residents want to shop locally, but there is a perception that prices charged by rural
shop keeper are higher and there is a lack of variety in selection and availability in
selected rural areas.
As per table -5.11, respondents were asked to give their opinion towards the products
attributes which plays an important role in their buying behaviour. Out of fifteen
products attributes, most preferred important factor of rural respondent in case of Lux /
Lifebuoy is the good quality of the product. Almost 92% respondents give first
preference to the good quality for toilet soap. The second most preferred attribute in case
of toilet soap is low price of the product, in this category of toilet soap 85.15%
respondents give their preference to the low price association with the product. The other
important factor from the perspective of rural respondent in case of toilet soap is variety
of size of the product and easily availability of the toilet soap at their buying place.
Fragrance of toilet soap is also playing important role in case of rural buying behaviour,
as per the data 42.58% of respondents give importance to the fragrance of toilet soap
while making purchase decision.
In case of selected H.U.L. detergent soap, namely Rin / Wheel, respondents give first
preference to the good quality of detergent soap, from the collected data as per table -
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5.11, majority 89.75% respondents have given their preference to the good quality of the
detergent soap. The second factor which plays an important role while making purchase
decision is the low price association with the detergent soap. In case of detergent soap
rural respondents gives almost equal preference to the variety of size of products and
easily availability of product while making purchase decision. Another important factor
while making purchase decision is price discount available on product.
In case of selected H.U.L. tooth paste, namely Pepsodent / Closeup, customer give first
preference to the good quality of tooth paste, from the collected data as per table -5.11,
majority 87.62% respondents have given their preference to the good quality of the tooth
paste. Another important factor is low price of the tooth paste, 79.75% respondents have
given their preference to the low price of the product while making purchase decision. In
case of selected toothpaste almost47% respondents have given their preference to easy
availability of product at their regular buying place and various size of product. Other
important factor in case of selected tooth paste is discounted price of tooth paste and
variety of flavours available in tooth paste. Few of the respondents do give importance to
the availability of colours in tooth paste.
In case of selected H.U.L. hair shampoo, namely Clinic/ Sunsilk, from the collected data
as per table -5.11, the first important factor is good quality of product. Next important
factor that rural respondents consider is low price associated with shampoo. Almost 46%
respondents have equally given preference to the easily availability of the product and
variety of size available in shampoo while making purchase decision.39.38%
respondents gave importance to fragrance of the shampoo and few of respondents give
importance to the price discount while making purchase decision.
In case of selected H.U.L. tea, namely Taaza/ Taj Mahal, with reference to table 5.11, it
can be said that 81.27% rural respondents give first preference to the good quality of tea.
Another important factor is low price of product. Rural respondents do give importance
to the easily availability of the products and fragrance of tea, while making purchase
decision.
It can be concluded from the collected data of selected rural respondents that, majority of
respondents give first priority to the good quality of products and almost similar
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importance has been given to the low price of the products, so rural respondents are
looking for good quality of products in low price. With this they do give importance to
the some of the factors like easily availability of the products, discounted price and in
some products fragrance and colour variations in the products. While there are such
factors which are being least consider by the selected rural respondents were brand
loyalty, brand ambassador, advertisement and seasonal effect associated with the
selected H.U.L. products, while making purchase decision.
Sub Objective 4:
To study the satisfaction level associated with selected H.U.L. products in rural
areas of Gujarat state.
Product expectations in rural consumer are not so high, therefore a product with basic
requisite with reasonable price is being preferred by the rural people compare to high
price products. Now a day’s literacy level is increasing in rural area but still there is a
presence of illiteracy among them. So they identify a product by its packaging, colour,
visuals, size etc.
As par table 5.7, almost 90% of rural respondents were satisfied with selected toilet soap,
detergent soap, tooth paste and hair shampoo of H.U.L., while almost 67% rural
respondents are satisfied with tea of H.U.L.. So it can be said that there is a satisfactory
awareness of selected products of H.U.L. in selected areas of Gujarat.
The significant relationship between the satisfaction level with product and brand loyalty
has been tested by Hypothesis H9 and with the help of Chi-Square test which shows the
rejection of null hypothesis. It means that there is significance association between
satisfaction level with product and brand loyalty towards the product.
As per the correlation analysis, Table – 5.36, it can be said that there is a weak negative
correlation between price of the product and satisfaction level associated with it. Means
that price reduction has very less impact on satisfaction level increment in case of
selected H.U.L. products.
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So it can be concluded that, in the selected rural areas of Gujarat state, majority of the
rural respondents are satisfied with the selected H.U.L. products.
Sub Objective 5:
To study the impact of pricing factor for selected F.M.C.G. products of H.U.L. in
rural areas of Gujarat State.
Penetration or low price is preferred marketing strategy to get entry into the rural market
and product can establish a strong hold on the market share. By the time this strategy
creates difficulties for the future entry of rival’s products. A higher price generates
resistance to sales. For every paisa increase in price, the rural customer asks more and
more justifications for it. In general, moderately priced and low price brands do well in
rural market.
As shown in the table 5.11, it can be said that, for all the selected H.U.L. products, the
rural respondents consider second most importance factor to the price of the product,
except good quality of product all other factors comes afterwards.
The same importance of price factor has been also checked by chi-square test between
two variables that are total monthly income and preference given to the price of the
product, by the Hypothesis H3 and with the help of Chi-Square test, it can be conclude
that there is significance association between monthly income and preference given to
the variety of size the products. The significant association between two attributes
indicates that, though there are variations in income of the rural respondents but those
selected respondent’s gives preference to the variety in size and variety of size indicates
the variety in price in the selected areas of Gujarat. The same has been also calculated
with the help of cross tabulation , table – 5.13, from the table it can be said that out of
1000 rural respondents 796 (79.6%) of rural respondents gives more preference to the
price of the product compare to the brand name and quality of the product.
According to table 5.31, rural respondents give more preference to the price compare to
brand name and quality of the product. This has been represented as mean value of 3.90
out of 5 in the table.
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According to correlation Analysis Table – 5.36, it is clearly seen that there is a there is
weak negative correlation between importance to the price factor and satisfaction level
associated with selected H.U.L. products. It also indicates the existence of significant
relationship between two variables except toilet soap.
So from above all, it can be concluded that price factor plays an important role in rural
respondents buying behaviour and F.M.C.G. brands manufacturer / agencies needs to
give due consideration while designing their marketing strategies for rural respondents.
Sub Objective 6:
To study the present promotion strategies for selected F.M.C.G. products of H.U.L.
in selected rural areas of Gujarat State.
Over the years, the attitude and standard of living of rural people has been changed due
revelation through television and exposure through a move up in literacy level and urban
proximity. Reach of media is a strong reason for the penetration of essential
commodities in to the rural areas. Increasing awareness and knowledge on different
products and brands step up the demand. The word of mouth is an important way of
communication in rural areas. Infect the opinion leaders are the most influencing part of
promotion strategy of rural promotion efforts.
From the table-5.10, it can be said that almost 70% of rural respondents prefers
discounted price, as a favourite promotional scheme on the selected F.M.C.G. products.
While 17% of rural respondents prefers extra quantity with the same price as a favourite
promotional activity on selected F.M.C.G. products. And nearby only 2% of respondents
prefers the attractive packaging as a part of the promotional activity for their selected
H.U.L. products.
Product advertisement which leads to awareness of the product and enhance the product
knowledge is also important factor being considered by the selected rural respondents,
and the same has been represented with the mean value of 3.78 out of 5 in table number-
5.31.The effect of advertisement has been also tested by the chi- square test by the
hypothesis – H2. Where the significant relations between the enhancement of product
knowledge by the advertisement and advertisement always creates always interest for the
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product has been checked and can be concluded that there is significant relationship
between the two selected variables.
So it can be concluded that, rural respondents are price conscious and so in rural areas
the most preferred promotional activity for the selected H.U.L. brands is price discounts
on MRP. Rural respondents prefer to purchase the branded products but with this they
give equal importance to the price of the product, so they are looking for price discount.
While very few rural respondents prefers the extra quantity in the same price as a part of
promotional activity.
Sub Objective 7:
To analyse the factors responsible for switch over from the H.U.L. products by the
customers in the rural areas of Gujarat State.
Rural consumer’s literacy ratio is increasing day by day, which leads to the improvement
in the knowledge and general awareness about the present market scenario. As well in
the majority of cases, the main source of information for the F.M.C.G. products have
been shifted to the television. Due to television they become aware of recent products
available in the market and which leads to comparison between different products of
different competitors.
As per table -5.12, respondents were asked to give their opinion towards the products
attributes which plays an important role in switch over from the selected H.U.L.
products. Out of fifteen products attributes, most preferred important factor for switch
over among rural respondent in case of Lux / Lifebuoy is the low price of the product.
Almost 86% respondents has given first preference to the low price in case of toilet soap.
The second most preferred attribute in case of toilet soap is choice of good quality of the
product, in this category of toilet soap 84% respondents have given their preference to
availability of the good quality products in the market for switch over. Another
important factor from the perspective of rural respondent in case of toilet soap for switch
over is discount on the product and easily availability of the toilet soap at their buying
place.
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In case of selected H.U.L. detergent soap, namely Rin / Wheel, respondents give first
preference to the low price of detergent soap, from the collected data as per table -5.12,
majority i.e. 86% respondents have given their preference to the low price of the
detergent soap. The second factor which plays an important role while making switch
over decision is the availability of good quality of detergent soap. In case of detergent
soap rural respondents gives importance to easily availability of product and price
discount available on product while making switch over decision.
In case of selected H.U.L. tooth paste, namely Pepsodent / Closeup, respondents gives
first preference to the low price of tooth paste, from the collected data as per table -5.12,
majority i.e. 86% respondents giving their preference to the low price of the tooth paste.
Another important factor is choice of good quality of the tooth paste, 80.32%
respondents have given their preference to the good quality of the product while making
switchover decision. In case of selected tooth paste almost 36% respondents have given
their preference to easy availability of product at their regular buying place and other
important factor in case of selected tooth paste is discounted price of tooth paste, while
making switchover decision.
In case of selected H.U.L. hair shampoo, namely Clinic/ Sunsilk, from the collected data
as per table -5.12, the first important factor for switch over is low price of product. Next
important factor that rural respondents consider is good quality of shampoo. Almost 34%
respondents have given their preference to the easily availability of the product and few
respondents gave importance to the price discount while planning to switch over the
selected H.U.L. brand.
In case of selected H.U.L. tea, namely Taaza/ Taj Mahal, with reference to table 5.12, it
can be said that 80% rural respondents have given their first preference to the good
quality of tea. Another important factor is low price of product. Rural respondents also
give importance to the easily availability of the products while making switch over
decision in case of selected H.U.L. tea.
It can be concluded from the collected data of selected rural respondents that, majority of
respondents have given first priority to the low price of products and almost similar
importance has been given to the good quality of the products, so rural respondents are
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looking for good quality of products in low price while thinking for switch over selected
H.U.L. products. With this they also give importance to the some of the factors like
easily availability of the products, discounted price of the products. While there are such
factors which are being least consider by the selected rural respondents are brand loyalty,
brand ambassador, advertisement and seasonal effect associated with the selected H.U.L.
products, while making switch over decision.
Sub Objective8:
To study the present Distribution strategies of H.U.L. for selected F.M.C.G.
products in rural market of Gujarat State.
A good distribution system means that the company has a greater chance of selling its
products as compared to competitors. A company that can make its product available
over wide areas and at lower cost as compared to its competitors will leads to success of
capturing larger market share. In rural India, the major road-blocks related to distribution
and channel management are identified as; Lack of retail infrastructure, Lack of proper
warehousing facility, Transportation problem, Large and scattered market, etc.
From the table-5.8, it can be said that among the selected H.U.L. products in case of
toilet soap, detergent soap, tooth paste and hair shampoo has the availability ratio of
almost 95%, it means that the above said products are most of the times available in the
selected rural areas. While in case of selected tea the availability frequency is 77%, it
means that the availability of selected tea may not be there at all the time and at all
regular buying places in the selected rural areas.
As par the correlation analysis as shown in the Table – 5.34, the correlation analysis
between two variables, which are the availability of the product and income of the
respondents. The result indicates that, there is almost low positive correlation between
two variables, but there is a presence of significant association between two variables.
So it can be concluded that, in case of selected H.U.L. products, in majority of selected
product the availability is almost 95%. As par the collected data the lowest availability of
selected H.U.L. tea is also 77%. It means that the selected H.U.L. products have
satisfactory presence in the selected rural areas of Gujarat state.
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Sub Objective9:
To study the present scenario of H.U.L. in rural marketing in Gujarat State (With
a selected products and geographical area).
There has been visible change in the rural consumer’s opinion towards branded
F.M.C.G. products. Also with increasing literacy level and disposable income, there has
been shift in acceptance level of different branded F.M.C.G. products available in the
market, where rural respondents are found mainly price conscious.
The present scenario of selected H.U.L. products in selected rural areas of Gujarat state
is quite satisfactory, it can be concluded from the collected data that, there is a good
awareness about selected H.U.L. products in selected rural areas of Gujarat state. As par
table 5.4, almost 95% of rural respondents are aware about toilet soap, detergent soap,
tooth paste and hair shampoo of H.U.L., while almost 75% rural respondents are aware
about tea of H.U.L.. So it can be said that there is a satisfactory awareness of selected
products of H.U.L. in selected areas of Gujarat.
As per the table 5.5, it represents the actual users of selected H.U.L. products in the
selected rural areas of Gujarat state. According to data, in case of toilet soap, 97%
respondents have used H.U.L. toilet soap, 94.6% respondents have used H.U.L.
detergent, 86.4% rural respondents have used H.U.L. tooth paste and 89.9% rural
respondents have used H.U.L. hair shampoo. While near to 58% respondents have used
H.U.L. tea. So it can be concluded that majority of the selected rural respondents have
used selected H.U.L. products except selected tea.
In terms of satisfaction level with selected H.U.L. products shows that satisfactory result.
As par table 5.7, almost 90% of rural respondents are satisfied with selected toilet soap,
detergent soap, tooth paste and hair shampoo of H.U.L., while almost 67% rural
respondents are satisfied with tea of H.U.L.. So it can be said that there is a satisfactory
awareness of selected products of H.U.L. in selected areas of Gujarat.
With reference to the availability of selected H.U.L. products, the data represents
reasonable availability in selected rural areas. From the table-5.8, it can be said that
among the selected H.U.L. products toilet soap, detergent soap, tooth paste and hair
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shampoo the availability ratio is almost 95%, it means that the above said products are
most of the times available in the selected rural areas. While in case of selected tea the
availability frequency is 77%, it means that the availability of the product does not mean
the presence of selected tea at all the time and at all regular buying places in the selected
rural areas.
The factor which plays an important role in purchasing decision with reference to
selected H.U.L. products are positively associated with it. According to collected data,
majority of respondents give first priority to the good quality of products and almost
similar importance has been given to the low price of the products, so rural respondents
are looking for good quality of products in low price. With this they also give
importance to the some of the factors like easily availability of the products, discounted
price and in some products fragrance and colour variations in the products. It proves that,
selected H.U.L. products have some of the key features as per the rural respondents
requirement, which attracts the rural consumers to buy the selected H.U.L. products to
fulfil the requirements in selected areas of Gujarat state.
So it can be concluded that the present scenario of selected H.U.L. products is quite
satisfactory because majority of the respondents are aware about the selected H.U.L.
products, majority of the respondents are using selecting H.U.L. products, majority of
the rural respondents are satisfied with the H.U.L. products and they do have valid
reason and associate product attributes to purchase selected H.U.L. products compare to
other brands.
6.2 SUGGESTIONS OF THE STUDY:
The suggestions from the study are as mention below:
As per collected data it can be said that, 95% of rural respondents are using
television as their main source of information. So H.U.L. should focus more on
television advertisement.
As per the collected data, table 5.14 of cross tabulation, it can be said that,
almost 65% of rural respondents are saying that, they faced problem of product
differentiation between branded products and spurious product. So company
should consider this point while framing strategy related to products and try to
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give some unique identification with high level of awareness to the products,
which makes them different from other brands and easy to recognize.
It is clearly seen that from table 5.15, advertisement helps to enhance the product
knowledge. So to increases the product awareness, company should focus more
on advertisement. As far as the rural consumers are concern, company should
think about regional language advertisement, which may lead to more awareness
with deep reach in to the rural areas.
As per collected data, it can be said that out of five H.U.L. selected products
categories, except tea other four categories namely; toilet soap, detergent soap,
tooth paste and hair shampoo are being used almost 95% by rural respondents in
selected areas of Gujarat state. While in case of tea about 75% of rural
respondents have used it. So company should more emphasis on increasing
awareness and acceptance level of selected H.U.L. tea in selected rural areas of
Gujarat state.
As per collected data and shown in table (annexure-1), almost 70% of rural
respondents are giving reference to medium size product, while making purchase
decision, specifically in selected rural areas of Gujarat state. So company should
try to focus on designing the products in medium size packaging, which may
fulfill the rural requirements and helps the company to increase their market
share.
It has been observed thorough collected data that, there is an increment in the
family income of the rural respondents. It indicate that it may lead to more
purchasing power so company should understand the requirement of the rural
respondents and make products according to their requirements to get quick
acceptance of the product in the rural area of Gujarat state.
Rural respondents give more preference to the price of the product compare to
the brand name and quality of the product. So companies should frame their
pricing strategy accordingly to attract the majority of rural consumer towards the
product. As per the data collected and with reference to designed hypothesis, it
can be said that, rural respondents satisfaction level is indirectly associated with
price of the products.
As per data collection, rural respondents shows very low brand loyalty towards
selected H.U.L. products. So if rural respondents get an option of low price with
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good quality product, they may switchover the brand. So F.M.C.G. manufacturer
/ Agencies need to consider this point while framing rural marketing strategy and
try to frame such promotional activity which leads them to make at least
repetitive costumer and slowly move them towards the aim of brand loyal
costumer.
There is no doubt that high price products, have high customer involvement and
lead towards the high product satisfaction with brand loyalty. But here H.U.L.
being F.M.C.G. company, it should be ensured that customers have repetitive
purchase which may turn them in loyal customers and to ensure the loyalty, the
blending of 4p’s should be devised considering the specific needs, wants,
perceived performance and various products attributes for the rural consumers.
As per collected data, Annexure -1 Table-3, majority 93% of the rural
respondents give first preference to the price of the products and subsequently
they give importance to quality of products, quantity of products, awareness of
products, and availability of products. They give less importance to credit
facility and opinions by friends and family.
As per the collected data and Annexure -1, Table- 4, total 61.6% of selected rural
respondents have mobile phone connectivity, 50% of respondents owned two
wheeler and 32% of respondents have land ownership. It means that majority of
selected rural respondents have good standard of living and purchasing power.
So company should understand the needs of rural consumers and accordingly
product should be design to get high level of acceptance.
It has been found that majority of rural respondents that is 25.1% are graduates,
and 24.1% of rural respondents have qualification up secondary school. Only
10% of rural respondents have not been to school that means 90% of rural
respondents are literate and so company should design their marketing mix
strategies by considering this factor.
From the collected data table-5.1, it can be said that 40.1% of rural respondents
were found monthly salaried or work on monthly wages system. It means that,
they have fix monthly income and budget allocation for F.M.C.G. products. So
company should design the product accordingly, which best fitted in to the
budget allocation of the rural respondents and fulfill their expectation towards
the products.
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6.3 RECOMMENDATIONS OF THE STUDY:
Today’s consumers are very smart, so business should be carried out in an ethical
ways. Even day by day various laws are being enforced for protecting consumers
rights. Hence company should be transparent enough to provide details about
various products and special campaigns should be launch to make consumers
aware about how to differentiate spurious products and the company should
legally resort to initiate action against those who are involved in it and strict legal
actions should be enforced.
For the betterment and making rural consumer well aware, a separate department
at company level should be created which will take care of the issues and
problems of rural consumers.
Company should think about price differentiate strategy for urban and rural
consumer.
Rural consumers generally prefer to buy those products, where they can have
credit facilities. Specifically in rural areas people are closely known to each
other. So rural consumers would prefer to purchase the products from where they
can avail credit facility. So company should extend their support specifically for
rural shop keepers by providing Credit facility with reasonable rate of interest to
increase the sales of the products in the rural areas.
An attempt should be made to measure the advertisement effectiveness in rural
areas. There is no doubt that, advertisement is meant for creating awareness but
subsequently it should also be ensured that AIDA model is adopted effectively by
the rural consumers.
The haat is very basic and local platform promoted by the rural people and for the
rural people, and which has already gain a good acceptance level by rural
consumers, so company should thinks to take the advantage of the same market
by making their presence available in to the haat culture and make the rural
people feel that the products are made for them only.
As F.M.C.G. products are low price products and their consumption depends on
many factors, so the brand loyalty associated with it is generally low. Hence
company should design their marketing strategies in such a way, where a rural
consumer would like to purchase the product repetitively due to associated
benefit and by the time company get advantage of brand loyalty.
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Rural consumers are influenced by local leaders, hence an attempt should be
made to involve local representative, Opinion leader, etc for promotional activity
of the products to get easy acceptance and faith of word of mouth publicity.
Continuous Research and Development activities should be focused upon to
understand the changing pattern of test and preferences of the products by the
rural customers and according the products should be developed.
F.M.C.G. company may think for local level, state level, regional level, national
level and international level event sponsorship to increase the awareness of the
products.
It has been observed that, as far as consumer adoption process is concerned rural
customers feet in category of late majority. They generally do not try the new
products available in the market on experiment bases. So an attempt should be
made by way of formulating effective strategies that rural consumers turn from
late majority stage to the early majority stage and to increase the acceptance level
towards modified or new products by rural consumers.
6.4 MANAGERIAL IMPLICATION OF THE STUDY:
The collected data says that, the rural consumers are more price conscious, but
with this, they are looking for good quality products too. So now company
should design their marketing strategy where they can offer quality product with
reasonable price.
Company should keep in mind the rural consumer behavior of less brand loyalty
towards F.M.C.G. products, so company should offer their product in such a way
to the rural consumer, so that rural consumer would like to buy the product again
and again and company should by the time get the advantage of brand loyalty.
In the rural area, there is a presence of spurious products, and due to variation in
literacy and product awareness level, this spurious products has got benefits of
getting place in to the regular market. So company has to take action against this
and make the rural people aware about the brand and brand should create some
uniqueness in their product, so one can easily recognized the real brand compare
to the spurious product.
Rural market is untapped market and has huge potential, this fact is known to the
every company / brand in to the market. So they are also putting their hard efforts
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to get the success in the untapped market. Though H.U.L. is having high market
share in some of the product category but their competitors are not so far from
them, while in some category there are local brands that had got the number one
position. So to maintain the market share and to capture the new market company
has to bring some changes in their existing policies time to time.
Company should design their distribution system in such a way that, the product
remains available all time in to the rural areas. Because the rural customer prefers
the products which are easily available.
Company should try to offer small packaging for the products wherever it is
possible, because the rural customers prefer medium size products while making
purchase decision.
Rural consumer prefers price discounts on the product as the best promotional
scheme as per collected data, so company should design their promotional
schemes accordingly to get more acceptances by the rural customers.
6.5SCOPE FOR FUTURE RESEARCH:
The scopes for further research are as mentioned below:
The study has been restricted to the five zones and ten districts of that zone, of
Gujarat state only. So further study can be done by considering more zone and
districts of Gujarat state and may be with regional, state and national level.
The sample size for this research study has been finalized to 1200 respondents.
So further study can be done with more statistical significant sample size.
The study has been restricted to five categories of H.U.L. products and out of
those two products in each category has been selected for this study. So further
study can be done by considering more numbers of categories and products and
even with different brands.
This study is based on multistage sampling comprising of Cluster, Stratified and
Convenience sampling for selected rural areas of Gujarat state. So further study
could be done in a more scientific way with a other appropriate sampling
methods and with a statistically significant sample size.
Future studies could focus on the reasons for not using H.U.L. brands and to
design marketing strategies specifically for H.U.L. non users.
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This study has been restricted to the selection of some developed villages or fast
developing villages. So further study can be done by considering backward and
interior villages.
6.6 CONCLUSION OF THE STUDY: [
The rural marketing strategies for the selected H.U.L. products in the selected areas of
Gujarat state topic has been selected because of the reason that, the rural areas are the
untapped market with high potential. The urban market is now stagnant, so for the
growth of market share, company has to go rural. As H.U.L. is consider as market leader
in F.M.C.G. products, the objective was to verify the same with the actual data
collection, and for that rural areas of Gujarat state has been selected.
For the data collection, multistage sampling comprising of Cluster, Stratified and
Convenience sampling has been used to draw a required sample size for this study. At
the initial stage, rural areas of Gujarat have been clustered in a five zone namely North,
South, East, West and central Gujarat. Out of these five clusters, two districts which is
developing fast and supposed to be developed in near future from each cluster have been
taken into consideration for the study. From each districts, two talukas have been
selected on the basis of population, distance from each other, nearness to the districts and
the fast developing talukas in that districts. From each talukas, three fast developing
villages have been considered for the study and sample size of 1200 has been finalized
after having discussion with the experts of this areas and references of the books.
The questionnaire has 59 questions comprising of three sections namely demographic
profile of the respondents, Likert type 4p’s rural marketing questions and section 3 has
again two parts, consist of H.U.L. users and H.U.L. non users. It was pre tested and on
the bases of the data and experience, the necessary changes have been made. The
reliability test result give the value of Cronbach’s Alpha is 0.694, which is near to 0.7, so
can be considered as good for further analysis of data.
During the data collection 1200 questionnaire was distributed in selected rural areas and
out of that 1049 questionnaire has been received back, and among that 49 were found not
filled properly so discarded and not consider for the further study. So final sample size
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has been considered as 1000, for all further data calculations. The collected data has
been analysed with the help of SPSS software and the data has been analysed with the
help of different statistical techniques, hypothesis has been framed and it was tested with
the help of chi- square test.
On the basis of data analysis, findings of the study has been carried out, suggestions has
been finalized, recommendation has been drawn, managerial implications has been
drawn and scope for the future study has been finalised.
So at the end of the study it can be concluded from the collected data that, the literacy
rate is high in selected areas of Gujarat state, 95% rural respondents have awareness
about H.U.L. brand, majority of the rural respondents are satisfied with the selected
H.U.L. products, they are satisfied with the availability of the selected H.U.L. products
at their regular buying places, they are happy with their product quality and price of the
product. The rural people are mainly price conscious but not so brand loyal, so they may
switch to other brand in case, other brand offer them comparative quality product with
low price, they do not consider the fragrance and taste as important factor while making
purchase decision. As well there is very low effect of brand ambassador on their buying
behaviour but advertisement definitely helps them to increase their product knowledge
and which helps them to differentiate between branded products and spurious products.
Overall it can be concluded that, among five selected product categories except tea, the
performance of H.U.L. products are excellent, in case of H.U.L. tea, it has less market
share and awareness. So company should focus on this point and make the future
strategy. With reference to other selected products H.U.L. needs to change their
strategies time to time to maintain satisfied customers and good position as per the trends
in the market.